RWAGASANA v BANK OF KIGALI (BK) LTD

RWAGASANA v BANK OF KIGALI (BK) LTD

The Supreme Court found that Rwagasana and Mukakimenyi were jointly liable for the principal loan and late fines as per the contract, including the performance guarantee paid by BK Ltd. The interest rate of 19.25% for late fines was valid as Rwagasana was notified and did not object. Mukakimenyi could not repudiate...

Source-derived case information.

Citation
RCOMAA0056/15/SCRCOMAA00025/ 2017SC-RCOM 0003/17/CSRCOM00004/ 2017/SC
Parties
Appellant: Rwagasana Thomas; Appellant/intervener: Mukakimenyi Marie Rosine; Respondent/cross Appellant: Bank of Kigali (BK) Ltd
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
26 January 2018
Case Number
RCOMAA0056/15/SCRCOMAA00025/ 2017SC-RCOM 0003/17/CSRCOM00004/ 2017/SC
Procedural Posture
Civil/commercial Appeal / Supreme Court Judgment
Outcome
Appeal dismissed; cross-appeal and claim allowed in part; Commercial High Court judgment sustained.
Legal Topics
Loan Agreements, Interest Rates, Performance Guarantee, Suretyship, Matrimonial Property, Procedural Fees, Expert Fees, Damages
Source Language
en
Contract Law Banking Law Civil Procedure Commercial Law Loan Agreements Interest Rates Performance Guarantee Suretyship +4 more

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Parties

Rwagasana Thomas

Appellant

Mukakimenyi Marie Rosine

Appellant/intervener

Bank of Kigali (BK) Ltd

Respondent/cross Appellant

Procedural Posture

Civil/commercial Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether Rwagasana and his spouse are jointly liable for the loans and performance guarantee claimed by BK Ltd
  2. 2 Whether the interest rate and late fines applied by BK Ltd are valid under the contract
  3. 3 Whether Mukakimenyi Marie Rosine can repudiate liability for loans allegedly not signed by her

Ratio Decidendi

The Supreme Court found that Rwagasana and Mukakimenyi were jointly liable for the principal loan and late fines as per the contract, including the performance guarantee paid by BK Ltd. The interest rate of 19.25% for late fines was valid as Rwagasana was notified and did not object. Mukakimenyi could not repudiate liability as she signed all relevant agreements. Procedural and counsel fees were awarded at the court's discretion, not at the contractual percentage, and expert fees paid by BK Ltd must be reimbursed by Rwagasana as he lost the case.

Court Disposition

Appeal dismissed; cross-appeal and claim allowed in part; Commercial High Court judgment sustained.

Orders

  • Rwagasana Thomas and Mukakimenyi Marie Rosine to pay BK Ltd 881,697,134 Frw for principal loan and 786,948,623 Frw for late fines (total 1,668,645,757 Frw)
  • Rwagasana Thomas and Mukakimenyi Marie Rosine to pay BK Ltd 1,000,000 Frw for procedural and counsel fees